Relaxed rules

The PTI’s mini-budget has raised a network of concerns. The move to reverse the PML-N’s decision to place restrictions on non-filers to purchase property and new cars in their name is particularly contentious. The PTI had promised to take steps to widen the tax net by levying direct taxes on those who earn a large sum of money and own assets but have never filed tax returns. It is being feared that the decision to lift restrictions on non-filers will encourage tax evasion. The rationale that this decision will facilitate overseas Pakistanis to buy property also doesn’t bear scrutiny.

Overseas Pakistanis who hold NICOPs could have been facilitated if the authorities had asked them to send their savings through the state-owned State Bank or National Bank at prevailing open market exchange rate to buy property or cars. This could have helped boost the depleting foreign exchange reserve. To ensure that such remittances are expeditiously credited in overseas Pakistanis’ accounts, administrative measures should have been taken to do away with red tape. The PTI government must focus its energies to recover money from loan defaulters in Pakistan.

Ali Malik Tariq ( Lahore )